While the broad stock market had a banner week, companies that reported earnings this week generally did not. A total of 42 companies reported earnings this week, and the price reactions certainly left something to be desired. The average stock that reported this week opened down 2.44%, then traded down another 1.75% from the open to the close. The average full-day change for the 42 stocks that reported this week was a decline of 3.63%.
Below is a snapshot of the stocks that had the most negative price reactions to earnings this week:
Home furnishing retailer At Home (HOME) tops the list of losers after the stock lost more than half of its value after its most recent earnings report Thursday morning. On top of lowering guidance, the company was expected to see EPS fall to $0.04, a massive decline versus the previous quarter’s $0.47 and last year’s Q2 $0.34, but the company reported an even worse EPS of $0.03. This profitability drop overshadowed YoY revenue growth of just over 6%. The stock’s complete collapse yesterday accelerated what was already a long-term downtrend, bringing the stock to an all-time low.
Another specialty home decor retailer, Kirkland’s (KIRK), reported its second abysmal quarter in a row with lowered guidance, lower and negative EPS, and a miss in revenues. Last quarter saw a similarly poor report and the stock slid 23.38% in response. The punishment kept coming this time around as the stock was cut in half, falling from $4.23 at Wednesday’s close to $2.10 by the end of the day Thursday; the stock’s lowest level in over a decade.
At first glance, cloud services provider Pivotal Software’s (PVTL) most recent quarter may not have looked too bad, especially given its solid earnings history headed into the report. Even after Tuesday’s report, the company has never missed an EPS estimate in its history, and it has only missed revenue estimates once (the prior quarter). Despite maintaining this pretty strong track record, PVTL fell 41.26% in response in Wednesday’s trading. These declines were a result of weakness under the hood of this report. PVTL claimed several deals had fallen through and competition had become more of a headwind. In turn, the stock received multiple analyst downgrades. This perfect storm leaves the stock near all-time lows and 36.12% below its price when the stock first hit the market just over one year ago. Start a two-week free trial to Bespoke Premium to use our Earnings Calendar and other tools!